Flat glass giant NSG reported full-year results for fiscal 2010 which were better than previous forecast. The Japan-based firm said 4Q results reflected stabilized markets and restructuring actions. A…
Flat glass giant NSG reported full-year results for fiscal 2010 which were better than previous forecast. The Japan-based firm said 4Q results reflected stabilized markets and restructuring actions. Among the key achievements for the period were the appointment of a new president and CEO, the completion of a major restructuring program, the delivery of cost savings, and significant improvement in the debt maturity profile. The company forecasts continued profit improvement for FY2011. NSG said controlled cash management and cost reduction continued to mitigated the impact of challenging market conditions. The automotive business held up well despite the expiry of some government scrappage incentive programs. Specialty Glass results were buoyant, thanks to improving consumer demand although challenging conditions in Building Products markets continued. Cumulative Group revenues were JPY 588 billion (FY09: JPY 739 billion) and profit before amortization was JPY 0.9 billion (FY09: JPY 22.5 billion). Automotive revenues were JPY 265 billion and operating profit JPY 9.9 billion (before amortization). Specialty Glass revenues were JPY 66 billion and operating profit JPY 3.6 billion. Building Products revenues amounted to JPY 244 billion and operating loss before amortization was JPY 1.3 billion. The 4Q results reflect stabilized markets and restructuring actions, the company said. Demand in Automotive OE markets generally held up and AGR remains resilient. Specialty Glass profitability reflected strengthening market conditions. Delivery of cost savings in Building Products underpinned profitability despite lower seasonal demand. Continuing benefits from cost reduction programs helped all business line results. Fourth quarter group revenues were JPY 145 billion and operating profit before amortization was JPY 3.8 billion. Craig Naylor has joined the Group as CEO Designate. He will take over as president and CEO on 29 June 2010 from Katsuji Fujimoto, who becomes non-executive chairman of NSG Group. Mr. Naylor brings international business and manufacturing experience: during his international career he has worked in China, Switzerland, Japan and the United States, in positions in engineering, production management, manufacturing, product development, sales and marketing and global business management. Cost savings of JPY 16 billion were realized during FY2010. A restructuring program was completed as planned with 2,200 employees leaving the Group during FY2010, bringing the total reductions to 6,700. The Group restructuring program cost was charged to the income statement of JPY 6.6 billion during FY2010, in line with plans. A significant improvement in the debt maturity profile was achieved: cumulatively, the Group refinanced JPY 164 billion of debt during the year. During the quarter, JPY 52 billion of new debt facilities maturing in September 2013 were signed 24 March 2010. All FY2011 maturities have been refinanced. For FY2011, NSG forecasts full-year operating profit before amortization of JPY 28 billion on revenues of JPY 600 billion. Cost reduction programs are expected to contribute JPY 19 billion of savings for the financial year. The Group sees improving profitability in all three business lines as well as positive post-amortization operating income. The key objective for FY2011 is to continue improving manufacturing and quality performance while realizing benefits from restructuring programs. The board remains confident in the Group“s long term prospects, maintaining the full-year dividend.